Vornado Realty Trust has announced it has completed the sale 350 W. Mart Center, a 1.2 million-square-foot, two-building office complex located in Chicago’s River North submarket. Vornado sold the building, which was part of its Mart segment, to Shorenstein for approximately $228 million, which resulted in a net gain of approximately $54 million.
The property is the first equity investment for Shorenstein’s “Fund Ten,” formed in 2010 with approximately $1.23 billion of committed capital, including $75 million committed by Shorenstein.
Vornado first purchased the building in 1998, reportedly for $81 million. Completed in 1977, 350 W. Mart Center is the center of Chicago’s apparel industry and host to the world’s largest collection of apparel showroom space. Vornado later converted the property for a variety of office and creative use tenants, such as advertising, telecom, financial services, media and educational institutions.
The renovated property received LEED Gold certification in 2009 from the U.S. Green Building Council. A glass-enclosed skywalk connects the property to the Merchandise Mart, providing direct access to a CTA station, underground parking, restaurants and retail amenities located within the Merchandise Mart.
Some of the building’s key tenants include AT&T, Comcast SportsNet and Ogilvy. It also offers a 352-room business class hotel, a 3,400-square-foot conference facility and access to The Merchandise Mart’s food court.